Restaurant chain Pizza Hut has reportedly started restructuring talks in a move that could place hundreds of stores and thousands of jobs at risk.
Bosses have hired advisors at Alvarez & Marsal to explore the possibility of an insolvency agreement that could entail significant job cuts, according to Sky News.
Sources said that a final decision had yet to be taken by the chain but that a CVA was "a distinct possibility".
Pizza Hut - which has 5,700 employees in the UK - has 244 restaurant branches in the UK.
A total of 213 branches will have reopened from lockdown by 10 August, with a view to reopening the remainder as soon as possible, the company said on Wednesday.
In a statement, a spokesman said: "Despite government support, and entering lockdown from a place of strength, the cost of lockdown combined with reduced trading levels has had a substantial impact on the whole restaurant sector.
"Along with many other businesses, we are looking at ways to minimise that financial impact, while continuing to trade as usual.
"Whether this will require financial restructuring in the form of a CVA or otherwise is as yet undecided."
The chain told The Mirror the move will not affect its 380 Pizza Hut delivery branches in the UK.
“Pizza Hut Restaurants is a franchisee of Pizza Hut, and as such, operates as an independent legal and business entity.
"Pizza Hut’s delivery business of 380 stores is not included in or related to this possible restructure. Pizza Hut Delivery was designated an essential service during lockdown and continued to operate, successfully feeding the nation during these difficult times. We’ve seen strong momentum coming out of lockdown, particularly following investment in our digital and technology platforms.”
It comes as PizzaExpress is preparing to close roughly 75 outlets under a proposed CVA in the coming weeks.
Since March, the Café Rouge owner Casual Dining Group, Bella Italia's parent, Azzurri Group, and Carluccio's have fallen into administration.
Byron, Prezzo, Itsu and Wahaca are among those which have called in consultants to examine their financial positions, while A&M itself has been hired to help Pret a Manger with rent negotiations, just months after it terminated its EAT brand in the UK.
